State Defence Corporation’s 2024 Annual Report – establishment of a stable company, launch of international cooperation, and long-term development

In its first year of operations, State Defence Corporation Ltd (the Corporation) achieved several key milestones, as outlined in its first annual report approved at the shareholders’ meeting.

Firstly, a stable organisation was established. All necessary corporate governance documents were developed and approved, processes based on good governance principles were implemented, and an efficient, compact core team was formed. The material and technical base required for initial operations was also put in place. At the end of last year, the shareholders’ meeting appointed a permanent member of the management board to lead the Corporation.

Secondly, in cooperation with the Ministry of Defence and international partners, work was promptly launched in line with national security needs. This included the initiation of the ROLLO – “PROduction of ModuLar Charges with TripLe and Double base PrOpellant”, grant agreement no: ASAP-2024-101172125-ROLLO), which is a key step in developing the Corporation’s capabilities. The project provides an important foundation for the Corporation’s growth by gaining experience and expertise in the implementation of military production projects. It will also serve as Latvia’s “entry ticket” into international supply chains, ensuring ammunition availability from production to end user.

Thirdly, groundwork has been laid for strengthening Latvia’s defence capabilities and the Corporation itself, as well as for its long-term development.

In the previous year, the Corporation’s financial resources consisted of state budget funding of EUR 1.6 million. These funds were allocated and used in accordance with the initial plan – for the implementation of ROLLO, as well as for the Corporation’s development and operational activities. During the reporting period, in line with the plan, the Corporation did not generate profit but ensured financial stability.

The annual report covers the period from 29 November 2023, when the Corporation was established, to 31 December 2024. It includes information about the company, a management report, financial information and statements (including annexes), as well as an independent auditor’s report. The Corporation currently qualifies as a small-sized capital company.

The annual report is available (in Latvian) HERE.

Events after the reporting period

Since 31 December 2024, no events have occurred that would affect the Corporation’s financial position.

At the same time, several developments in 2025 related to the Corporation’s growth are worth highlighting. For example, the Corporation has developed and submitted for approval to its shareholder – the Ministry of Defence – a draft of its first planning document, the Medium-Term Strategy 2025–2028. In addition, a delegation agreement has been concluded between the Corporation and the Ministry of Defence, representing a precise and new governance model in the sector for the execution of specific tasks.

Another key milestone in early 2025 is the shareholders’ approval, in line with government decisions, of an increase in the company’s share capital by EUR 13.14 million. These funds are being used for the implementation of the ROLLO project, which is of strategic importance to Latvia’s defence sector.

About the “State Defence Corporation”

The Corporation was established following a decision by the Government of Latvia in November 2023. Its aims are to support the long-term development of Latvia’s defence industry, manage investments in the sector, and coordinate processes related to the production of military goods. Through these activities, the Corporation contributes to strengthening the supply capabilities of the NAF, supporting the growth of Latvia’s defence industry, and ensuring the security and continuity of international supply chains. The Corporation works in sectors that require significant state involvement and are not served by the private sector.

The Corporation also fosters national and cross-border cooperation and partnerships. The company is a wholly state-owned enterprise, with the Ministry of Defence acting as its shareholder.

INFORMATION
AGNESE KORBE 
State Defence Corporation 
Communication and Stakeholder Relations Manager
+371 29110062 
agnese.korbe@defencecorporation.lv 
defencecorporation.lv
linkedin.com/defence-corporation